Stock market news has made the first month of the new year feel like a series of decades packed into mere weeks. The list of stocks to keep an eye on before Monday’s opening bell includes a lineup of major movers from the past week’s tumultuous market. As the saying goes, “There are decades where nothing happens, and there are weeks where decades happen.” The current environment seems to encapsulate the latter sentiment.

Tesla (TSLA)

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Tesla (NASDAQ:TSLA) faced challenges this week, foreshadowing potential uncertainty as the company prepares for its upcoming earnings report. In a chilling blow, numerous electric vehicle (EV) owners throughout the Midwest experienced their Teslas failing in freezing temperatures, demonstrating the additional strain that cold weather places on the car’s batteries, resulting in faster than normal depletion. With EVs facing declining popularity and investors turning their attention to competitors like China’s BYD Company (OTCMKTS:BYDYY), Tesla may suffer a significant setback if its earnings fail to meet expectations next week.

Adding to the apprehension surrounding next week’s earnings, Elon Musk has issued an ultimatum to Tesla’s board, demanding greater control. Musk, who currently owns about 12% of the company, is grappling with his reduced influence after selling a substantial portion of shares to fund his Twitter/X venture. The looming specter of Musk’s ultimatum, focused on Tesla’s AI and robotics ventures, might further unsettle Tesla shareholders.

While Tesla shareholders are no strangers to upheaval, several bearish indicators could unsettle the stock as the new week commences.

Stock to Watch for Monday: AST SpaceMobile (ASTS)

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AST SpaceMobile (NASDAQ:ASTS) recorded a significant achievement this week; however, the subsequent share plummet left retail shareholders bewildered. After prolonged anticipation, ASTS revealed a confirmed strategic investment amounting to $206.5 million, designed to propel the space stock’s expansion as it launches its satellite-to-cell service coverage. This deal encompasses convertible notes, non-dilutive purchases, and an intended credit withdrawal. Most notably, one of ASTS’ new funding collaborators is Google (NASDAQ:GOOG, NASDAQ:GOOGL). In the current investment landscape, behemoths like Google are increasingly cautious about injecting funds into tech startups, especially those in pre-revenue stages like ASTS. Google’s endorsement positions ASTS as an influential player in the space sector going forward.

However, there is a downside. Despite the strategic investment avoiding dilution, ASTS is initiating a public stock offering worth $100 million. While this equity offering injects much-needed capital into ASTS’ reserves as it prepares to introduce its commercial offerings, it dilutes existing retail shareholders who have patiently waited thus far. The initial surge in shares following the announcement was eclipsed by the subsequent decline post-management’s disclosure of the dilutive offering, creating a push-and-pull dynamic that promises to be intriguing to observe as the new week unfolds.

Spirit Airlines (SAVE)

Sky High Drama: Turbulent Times for Airlines and Tech Giants

Disrupted Merger Sends Spirit Airlines into Tailspin

In some of this week’s top news, authorities nixed a proposed union between Spirit Airlines and JetBlue Airways. The termination hit hard for merger arbitrageurs who bet on shares of to-be-acquired companies, pinning hopes on the gap between market and acquisition pricing, but the long-term ramifications of the scrapped merger might be downright catastrophic for Spirit Airlines rather than merely disappointing for impacted investors.

Industry analysts foresee that, without an acquisition, Spirit faces a dire outlook – leaning heavily towards bankruptcy. Rather than opting for bankruptcy reorganization, analysts predict a grim fate: liquidation and the obliteration of Spirit Airlines. Airline expert Helane Becker encapsulated the stock’s immediate future, stating, “We understand this may sound dire, but the truth is that we see limited options for Spirit to restructure. While Spirit could seek an alternate buyer, it is likely to encounter similar resistance from another airline.”

Spirit has been urging JetBlue to contest the prohibition, leaving the airline’s next move anyone’s guess. Monday will cast a spotlight on the situation as one of the top stocks to watch.

Robotics Giant iRobot’s Acquisition Plans Derailed

Resonating with the “tough times for arb plays” in 2024, iRobot Corporation shares were significantly docked this week as indications pointed to a potential blockade in the company’s envisaged acquisition by Amazon. Shares tumbled almost 15% in response to the news, marking an almost 40% slump since the start of the year.

The European Union’s opposition revolves around claims that the merger would stifle competition in the robotic vacuum cleaner sector. The deal, initially announced by Amazon in August 2022 at $61 per share, has derailed, with the company’s stock now trading at below $25 per share.

While legal retaliation from Amazon’s acquisition team is foreseeable to contest European rulings, the weight behind this particular decision is not as substantial compared to the Spirit merger uproar. However, after a protracted battle, Amazon may decide the gamble is no longer worthwhile. Despite the major potential upside in the merger eventuating as initially planned, the jittery atmosphere among merger arbitrageurs post-Spirit episode may deflate hopes.

Apple’s Unwavering Dominance Brightens Earnings Outlook

Apple’s indomitable winning streak and the tech titan’s resounding performance in 2024 pave the way for sustained strength in the upcoming week. A substantial endorsement from analysts at Bank of America bolsters Apple’s steadfast footing going into earnings season. The endorsement pinpointed artificial intelligence and the company’s new Vision Pro headset as primary growth drivers. Consequently, the revision, indicating a near 20% upward thrust to a $225 fair market value, kindles enthusiasm.

Despite the bullish outlook from Bank of America, skeptics coexist with optimists, setting the stage for an engrossing display of volatility in Apple’s stock.

Analysis: Stocks to Keep an Eye on for Monday

Apple Inc. (AAPL)

Apple Inc. faces headwinds as iPhone sales slump and the anticipated Apple Vision Pro contends with competitive barriers. Major media providers, including Spotify and Netflix, have decided not to launch apps for the Apple Vision Pro.

Boeing Co (BA)

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Boeing Co had a mixed week with bullish and bearish tendencies vying to determine its outlook for Monday. Notably, Indian airliner Akasa Air placed a substantial order for 150 of Boeing’s 737 Max jets. This follows Air India’s announcement in 2023 to purchase over 200 Boeing planes. These orders underscore the ongoing trust in Boeing’s aircraft despite recent safety concerns.

A midair incident involving a 737 Max, however, contributed to the company’s 20% stock loss in 2024. Shareholders face conflicting narratives, but the history of mega-corporations like Boeing bouncing back implies that the current stock price may present an attractive entry point for long-term investors.

DraftKings Inc (DKNG)

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DraftKings’ recent launch in Vermont is indicative of a positive trajectory for the digital gambling stock. Despite a modest performance in the wider market, DraftKings shares have surged in 2024, outpacing the S&P 500’s returns.

While Jim Cramer’s endorsement might raise some concerns among DKNG investors, the company’s consistent market share and betting participation growth provide a strong foundation for continued success. As the winter sports season unfolds, DraftKings remains a promising stock to keep a close watch on for Monday.